Strong debut by Dodla and KIMS, gain 42% and 21% respectively at close

While the Dodla IPO was subscribed 45x, that of Krishna Institute was subscribed 3.8x

dairy, dairy farmers, — A worker cleans up cow dung in a cattle shed at a dairy farm in rural Maharashtra in 2017. (Photo: Bloomberg)

2 min read Last Updated : Jul 05 2021 | 12:50 PM IST

Dodla Dairy and Krishna Institute of Medical Sciences (KIMS) made a strong debut on Monday. The shares of Dodla Dairy got listed at Rs 528, a 23 per cent premium to the issue price. The stock gained another 15 per cent on Monday and closed the session at Rs 609, a 42 per cent premium to its issue price. Post listing, the company commands a market capitalisation of Rs 3,624 crore.

The initial public offer (IPO) of Dodla Dairy garnered an enthusiastic response; the IPO was subscribed 45 times. The institutional portion was subscribed 85 times, the wealthy investor portion was subscribed 73 times, and the retail portion was subscribed 11.3 times. Dodla Dairy had priced its IPO between Rs 421-428 per share.

The company intends to utilise the proceeds of the fresh issue to repay its debts and funding capital expenditure. Dodla Dairy sells milk and dairy-based value-added products.

The company's operations in India are primarily across Andhra Pradesh, Telangana, Karnataka, Tamil Nadu and Maharashtra. And their overseas operations are based in Uganda and Kenya.

Analysts had raised concerns about Dodla's steep valuation and the lack of pricing power for producers in the dairy industry. The company's presence being confined to four south Indian states and Maharashtra also concerned analysts.

KIMS got listed at Rs 1,009, a 22 per cent premium to its issue price. However, the stock corrected a bit and ended the session at Rs 996, a 21 per cent premium to its issue price.

The response to the IPO of hospital chain Krishna Institute of Medical Sciences (KIMS) was somewhat tepid compared to Dodla. Overall the issue was subscribed 3.8 times. The institutional bucket was subscribed 5.2 times, the wealthy investor portion by 1.8 times, the retail portion by 2.9 times and the portion reserved for employees was subscribed 1.06 times. KIMS had priced its Rs 2,143 crore IPO between Rs 815 to Rs. 825 per equity share. KIMS is one of the largest corporate healthcare groups in AP and Telangana and operates nine multi-speciality hospitals. It provides a range of healthcare services across over 25 specialities and super specialities.